A trailer manufacturer is not entitled to coverage from a Chubb Ltd. unit for trade dress infringement because the underlying litigation against it never makes that claim, a federal appellate court said Monday, when it upheld a lower court decision.
I October 2014, Nappanee, Indiana-based The Aluminum Trailer Co. contracted with Phoenix-based Sidi Spaces LLC, which does business as BizBox, to manufacture trailers using BizBox design, according to the judgment of the 7th U.S. Circuit Court of Appeals in Chicago in The Aluminum Trailer Co., d / b / a / ATC Trailers v. Westchester Fire Insurance Co.
In January 2019, BizBox discovered that ATC had manufactured a knock-off trailer using BizBox design and sold the trailer directly to a BizBox customer for a lower price, the verdict said. The knock-off trailer was virtually identical to a BizBox trailer, except that ATC had replaced BizBox's name and logo with its own.
. "In particular, the term 'trade dress' never appears in BizBox complaints," the ruling said.
Following West Chubb's denial of coverage, ATC brought an action for defense and liability in the BizBox dispute under its commercial liability policy, which provided coverage for advertising damage, including infringement of workwear.
The U.S. District Court in South Bend, Indiana, ruled in favor of the insurance company and was upheld by a three-judge panel of judges.
"The policy coverage extends to ATC only if BizBox claimed that ATC infringed on its commercial dress in ATC's" advertising, "it said.
occurred. BizBox did not. Quite simply, the policy does not cover any of the allegations raised by BizBox, "the panel said, confirming the lower court's ruling.
Actors in the case did not respond to requests for comment.